Author Topic: Newcastle United Supporters Trust (NUST)  (Read 119523 times)

0 Members and 1 Guest are viewing this topic.

Offline quayside

  • General Member
  • No Agenda
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #650 on: Monday 11 January 2010, 10:45:51 PM »
What is SJP Holdings? Do they mean SJHL?

Dear God.

Isn't SJP Holdings the company Ashley formed to buy the club? May be well off with that one, but I've definitely heard of it before.

I think Matt's point is that the company in question isn't called SJP Holdings - it's called St James Holdings Limited (SJHL). They've got the name wrong and their reference to it is nonsensical. And if you are going to enter territory such as this you need to have an eye for detail.

Offline Liam Liam Liam O

  • supports his local club.
  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #651 on: Monday 11 January 2010, 10:45:54 PM »
I just don't understand why they've come out with this now, when they're apparently only a few days away from revealing their plans and engaging in discussion with the club.

Offline Dave

  • Administrator
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #652 on: Monday 11 January 2010, 10:48:33 PM »
What is SJP Holdings? Do they mean SJHL?

Dear God.

Isn't SJP Holdings the company Ashley formed to buy the club? May be well off with that one, but I've definitely heard of it before.

I think Matt's point is that the company in question isn't called SJP Holdings - it's called St James Holdings Limited (SJHL). They've got the name wrong and their reference to it is nonsensical. And if you are going to enter territory such as this you need to have an eye for detail.

Oops. I knew I'd read that post wrong.

Offline TRon

  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #653 on: Monday 11 January 2010, 10:54:18 PM »
I just don't understand why they've come out with this now, when they're apparently only a few days away from revealing their plans and engaging in discussion with the club.

That should be interesting. I imagine it will go somewhere along the lines of

"Get out of our club
get out of our cluuub!
you fat cockney b******...
get out of our club"

negotiations should go swimmingly.


Offline Cronky

  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #654 on: Monday 11 January 2010, 11:03:02 PM »
I just don't understand why they've come out with this now, when they're apparently only a few days away from revealing their plans and engaging in discussion with the club.

It seems that they've struggled to get any serious offers of investment from financial institutions and businesses, and their hope always was that by demonstrating a high level of support for a fans' takeover, that in itself would convince the bigger money to come on board.

It's a pipe dream. They could collect 100,000 emails or surveys which say, 'Yes it would be a good thing if the fans owned the club and I'd like to find out more', but that isn't a demonstration that large numbers of people are prepared to part with large amounts of money. And that is what it would take before any institutions of signficance would want to join in.

The peddling of this £7 million rumour and this last minute survey feels like a desperate attempt to drum up more support. But it makes them looks amateurish and silly.
People generalise too much.

Offline johnnypd

  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #655 on: Monday 11 January 2010, 11:10:03 PM »
i reckon the £7m might have some basis in truth, but not in the way they think. bit like martins allegedly withdrawing all that cash every weekend - he probably did it once. likewise, we may well have made a £7m profit for one individual month in the summer with money coming in on season tickets, transfers etc. it's incredibly unlikely that we're making anything close to that every month.

Offline Liam Liam Liam O

  • supports his local club.
  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #656 on: Monday 11 January 2010, 11:12:49 PM »
i reckon the £7m might have some basis in truth, but not in the way they think. bit like martins allegedly withdrawing all that cash every weekend - he probably did it once. likewise, we may well have made a £7m profit for one individual month in the summer with money coming in on season tickets, transfers etc. it's incredibly unlikely that we're making anything close to that every month.

It goes further than that though because they've suggested he's making the profit personally "out of the club".

And the season ticket revenue won't all be recognised when it's collected either, it'll be spread over the season.

Offline quayside

  • General Member
  • No Agenda
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #657 on: Monday 11 January 2010, 11:23:29 PM »
i reckon the £7m might have some basis in truth, but not in the way they think. bit like martins allegedly withdrawing all that cash every weekend - he probably did it once. likewise, we may well have made a £7m profit for one individual month in the summer with money coming in on season tickets, transfers etc. it's incredibly unlikely that we're making anything close to that every month.

Maybe but we'll have made losses in plenty of the other months. If annual turnover is £60m - wages alone are probably still between £40m and £50m, never mind the other running costs, which were £50m in the latest accounts (2008) btw = losses.


Online Optimistic Nut

  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #658 on: Monday 11 January 2010, 11:26:03 PM »
Fair play to them on the swift response. Will read it in the morning when I'm less tired to make sense of it.

Quote
The £7m figure comes from a respected company's Investment document
that was used to try to raise investment to buy the Club.

The headline figures in summary are for an investment of £95m and the
document states that they would expect "turn the investment of
£95million into a value of between £150million to £205million on
return to the Premiership.The £205m was top end but a 5% return on
investment would equate to over £84m on the predicted turnover.

Without going into lots of detail it is based on a £42m reduction in
wages (6months), £14m transfer fees received set against a projected
reduction of ticket revenue based on 34,000 crowds.  We are getting
crowds of 43,000 with the subsequent increase in half year season
tickets. Other reductions include  - outsourcing catering, outsourcing
match programmes, reduction of backroom staff by over 200 and still
continuing, the scaling down of the academy, a parachute payment of
£11.25m, decent television income, perimeter advertising of £50,000
per month, recent sponsorship deals etc etc

The perimeter advertising and large Sports Direct sign on the stand
are likely to be free advertising for his business.

One newspaper also came out with this same figure last week.

In the Sunday papers Mr Ashley said that he would not stay where he
was not wanted and would sell in the summer. We think this is why he
is waiting until then.

Since relegation Mr Ashley has invested an alleged £20m and that
figure has never been confirmed and the club has reduced its overdraft
without any significant investment in the playing staff.

Obviously, these figures are on return to the Premiership with the
extra revenue that will entail and we will have to wait to see the
actual published accounts but we think that these figures will stand
up to scrutiny.
?s=21

Offline TRon

  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #659 on: Monday 11 January 2010, 11:33:44 PM »
Fair play to them on the swift response. Will read it in the morning when I'm less tired to make sense of it.

Quote
The £7m figure comes from a respected company's Investment document
that was used to try to raise investment to buy the Club.

The headline figures in summary are for an investment of £95m and the
document states that they would expect "turn the investment of
£95million into a value of between £150million to £205million on
return to the Premiership.The £205m was top end but a 5% return on
investment would equate to over £84m on the predicted turnover.

Without going into lots of detail it is based on a £42m reduction in
wages (6months), £14m transfer fees received set against a projected
reduction of ticket revenue based on 34,000 crowds.  We are getting
crowds of 43,000 with the subsequent increase in half year season
tickets. Other reductions include  - outsourcing catering, outsourcing
match programmes, reduction of backroom staff by over 200 and still
continuing, the scaling down of the academy, a parachute payment of
£11.25m, decent television income, perimeter advertising of £50,000
per month, recent sponsorship deals etc etc

The perimeter advertising and large Sports Direct sign on the stand
are likely to be free advertising for his business.

One newspaper also came out with this same figure last week.

In the Sunday papers Mr Ashley said that he would not stay where he
was not wanted and would sell in the summer. We think this is why he
is waiting until then.

Since relegation Mr Ashley has invested an alleged £20m and that
figure has never been confirmed and the club has reduced its overdraft
without any significant investment in the playing staff.

Obviously, these figures are on return to the Premiership with the
extra revenue that will entail and we will have to wait to see the
actual published accounts but we think that these figures will stand
up to scrutiny.

What swift response? You are posting it second hand from some other source presumably. I still don't understand how all this anti-Ashley stuff from the NUST is going to end in them buying him out which presumably is the point. It is the point isn't it?


Online Optimistic Nut

  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #660 on: Monday 11 January 2010, 11:35:15 PM »
I'm talking about the quick reply to my e-mail...unless they're getting a few queries about it so now have that as a copy & paste job.
?s=21

Offline Liam Liam Liam O

  • supports his local club.
  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #661 on: Monday 11 January 2010, 11:37:48 PM »
Fair play to them on the swift response. Will read it in the morning when I'm less tired to make sense of it.

Quote
The £7m figure comes from a respected company's Investment document
that was used to try to raise investment to buy the Club.

The headline figures in summary are for an investment of £95m and the
document states that they would expect "turn the investment of
£95million into a value of between £150million to £205million on
return to the Premiership.The £205m was top end but a 5% return on
investment would equate to over £84m on the predicted turnover.

Without going into lots of detail it is based on a £42m reduction in
wages (6months), £14m transfer fees received set against a projected
reduction of ticket revenue based on 34,000 crowds.  We are getting
crowds of 43,000 with the subsequent increase in half year season
tickets. Other reductions include  - outsourcing catering, outsourcing
match programmes, reduction of backroom staff by over 200 and still
continuing, the scaling down of the academy, a parachute payment of
£11.25m, decent television income, perimeter advertising of £50,000
per month, recent sponsorship deals etc etc

The perimeter advertising and large Sports Direct sign on the stand
are likely to be free advertising for his business.

One newspaper also came out with this same figure last week.

In the Sunday papers Mr Ashley said that he would not stay where he
was not wanted and would sell in the summer. We think this is why he
is waiting until then.

Since relegation Mr Ashley has invested an alleged £20m and that
figure has never been confirmed and the club has reduced its overdraft
without any significant investment in the playing staff.

Obviously, these figures are on return to the Premiership with the
extra revenue that will entail and we will have to wait to see the
actual published accounts but we think that these figures will stand
up to scrutiny.

Am I reading it wrong or does that last paragraph not just say the rest of that stuff isn't true?

Offline jdckelly

  • Book Wanker
  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #662 on: Monday 11 January 2010, 11:38:48 PM »
Fair play to them on the swift response. Will read it in the morning when I'm less tired to make sense of it.

Quote
The £7m figure comes from a respected company's Investment document
that was used to try to raise investment to buy the Club.

The headline figures in summary are for an investment of £95m and the
document states that they would expect "turn the investment of
£95million into a value of between £150million to £205million on
return to the Premiership.The £205m was top end but a 5% return on
investment would equate to over £84m on the predicted turnover.

Without going into lots of detail it is based on a £42m reduction in
wages (6months), £14m transfer fees received set against a projected
reduction of ticket revenue based on 34,000 crowds.  We are getting
crowds of 43,000 with the subsequent increase in half year season
tickets. Other reductions include  - outsourcing catering, outsourcing
match programmes, reduction of backroom staff by over 200 and still
continuing, the scaling down of the academy, a parachute payment of
£11.25m, decent television income, perimeter advertising of £50,000
per month, recent sponsorship deals etc etc

The perimeter advertising and large Sports Direct sign on the stand
are likely to be free advertising for his business.

One newspaper also came out with this same figure last week.

In the Sunday papers Mr Ashley said that he would not stay where he
was not wanted and would sell in the summer. We think this is why he
is waiting until then.

Since relegation Mr Ashley has invested an alleged £20m and that
figure has never been confirmed and the club has reduced its overdraft
without any significant investment in the playing staff.

Obviously, these figures are on return to the Premiership with the
extra revenue that will entail and we will have to wait to see the
actual published accounts but we think that these figures will stand
up to scrutiny.

Am I reading it wrong or does that last paragraph not just say the rest of that stuff isn't true?
thats what it seems to read to me in which case :facepalm:

Offline Cronky

  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #663 on: Monday 11 January 2010, 11:43:19 PM »
Fair play to them on the swift response. Will read it in the morning when I'm less tired to make sense of it.

Quote
The £7m figure comes from a respected company's Investment document
that was used to try to raise investment to buy the Club.

The headline figures in summary are for an investment of £95m and the
document states that they would expect "turn the investment of
£95million into a value of between £150million to £205million on
return to the Premiership.The £205m was top end but a 5% return on
investment would equate to over £84m on the predicted turnover.

Without going into lots of detail it is based on a £42m reduction in
wages (6months), £14m transfer fees received set against a projected
reduction of ticket revenue based on 34,000 crowds.  We are getting
crowds of 43,000 with the subsequent increase in half year season
tickets. Other reductions include  - outsourcing catering, outsourcing
match programmes, reduction of backroom staff by over 200 and still
continuing, the scaling down of the academy, a parachute payment of
£11.25m, decent television income, perimeter advertising of £50,000
per month, recent sponsorship deals etc etc

The perimeter advertising and large Sports Direct sign on the stand
are likely to be free advertising for his business.

One newspaper also came out with this same figure last week.

In the Sunday papers Mr Ashley said that he would not stay where he
was not wanted and would sell in the summer. We think this is why he
is waiting until then.

Since relegation Mr Ashley has invested an alleged £20m and that
figure has never been confirmed and the club has reduced its overdraft
without any significant investment in the playing staff.

Obviously, these figures are on return to the Premiership with the
extra revenue that will entail and we will have to wait to see the
actual published accounts but we think that these figures will stand
up to scrutiny.

I'll have a go.

This looks like it's based on a document from a few months ago when Ashley was trying to sell the club for £95 million. He is pointing out to potential buyers that if they take the club at that price and then get the club promoted, the club would be worth between £150m and £200m - which is probably correct.

They then point out the cost-cutting measures that are there to ensure the club is financially stable during the 'promotion season', and conclude that if someone makes the purchase, the return in terms of the increased value of the club is likely to be £84 million IF we are promoted. If we don't get promoted, things are still stable.

NUST have taken that figure of £84 million, divided it by 12, and concluded that Ashley is making a profit of £7 million per month. Complete rubbish.

What they are not taking into account is that we have not been promoted, and Ashley has already lost £230 million on his own purchase of the club and by clearing the initial £90 million debt.
People generalise too much.

Offline TRon

  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #664 on: Monday 11 January 2010, 11:47:45 PM »
I'm talking about the quick reply to my e-mail...unless they're getting a few queries about it so now have that as a copy & paste job.

I'm just surprised that after all the criticism of Ashley's regime of lack of open communication, someone couldn't have replied here rather than send selective emails. NUST are carrying out a pretty public campaign against Ashley after all.

Offline quayside

  • General Member
  • No Agenda
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #665 on: Monday 11 January 2010, 11:50:56 PM »
Fair play to them on the swift response. Will read it in the morning when I'm less tired to make sense of it.

Quote
The £7m figure comes from a respected company's Investment document
that was used to try to raise investment to buy the Club.

The headline figures in summary are for an investment of £95m and the
document states that they would expect "turn the investment of
£95million into a value of between £150million to £205million on
return to the Premiership.The £205m was top end but a 5% return on
investment would equate to over £84m on the predicted turnover.

Without going into lots of detail it is based on a £42m reduction in
wages (6months), £14m transfer fees received set against a projected
reduction of ticket revenue based on 34,000 crowds.  We are getting
crowds of 43,000 with the subsequent increase in half year season
tickets. Other reductions include  - outsourcing catering, outsourcing
match programmes, reduction of backroom staff by over 200 and still
continuing, the scaling down of the academy, a parachute payment of
£11.25m, decent television income, perimeter advertising of £50,000
per month, recent sponsorship deals etc etc

The perimeter advertising and large Sports Direct sign on the stand
are likely to be free advertising for his business.

One newspaper also came out with this same figure last week.

In the Sunday papers Mr Ashley said that he would not stay where he
was not wanted and would sell in the summer. We think this is why he
is waiting until then.

Since relegation Mr Ashley has invested an alleged £20m and that
figure has never been confirmed and the club has reduced its overdraft
without any significant investment in the playing staff.

Obviously, these figures are on return to the Premiership with the
extra revenue that will entail and we will have to wait to see the
actual published accounts but we think that these figures will stand
up to scrutiny.

I wouldn't waste too much time on that - it's nonsense.

Some points on that occur to me at first glance:

- So the idea is that the investment of £95m grows to be worth £205m when we are in the Premiership and 5% is a good return on that  so profits of £84m are possible. Our turnover won't be much more than £84m in the Premiership ffs. Not that  5% of £205m is £84m btw.

- Reductions on wages of £42m over 6 months - £42m is probably about our annual wage bill right now, and we are going to save it all in 6 months. Happy days....

- Quote "Obviously, these figures are on return to the Premiership" - ah so Ashley must wait until then to collect his £7m per month....

Utter bollox tbh   :lol:

Offline Thespence

  • General Member
  • Just asking questions
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #666 on: Monday 11 January 2010, 11:52:25 PM »
I'm talking about the quick reply to my e-mail...unless they're getting a few queries about it so now have that as a copy & paste job.

I'm just surprised that after all the criticism of Ashley's regime of lack of open communication, someone couldn't have replied here rather than send selective emails. NUST are carrying out a pretty public campaign against Ashley after all.

I am not following all this but did NUST make a general release & then someone sent in some questions & they answered them. Tbf you not going to get much better than that regardless of the content.
All the greats wear 23: Michael Jordan, Shane Warne, David Beckham & Shola Ameobi

Offline Cronky

  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #667 on: Monday 11 January 2010, 11:53:50 PM »
NUST are sailing pretty close to the wind here. They are trying to attract large amounts of money from ordinary people, and if this '£7 million' figure from the earlier statement is based on that information, then that amounts to a major piece of deceit.
People generalise too much.

Offline Stu

  • Loves Jimmy Savile
  • General Member
  • Jimmy McNulty
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #668 on: Monday 11 January 2010, 11:56:36 PM »
Quote from: BigTRONlink=topic=64913.msg2145096#msg2145096 date=1263253399

NUST have taken that figure of £84 million, divided it by 12, and concluded that Ashley is making a profit of £7 million per month. Complete rubbish.


:kinnear: :dowie: :facepalm: :kinnear:

Offline Dave

  • Administrator
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #669 on: Tuesday 12 January 2010, 12:05:23 AM »
I take it the NUST consider 'a source close to Ashley' in the Sunday Mirror to actually be him then?

Offline jdckelly

  • Book Wanker
  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #670 on: Tuesday 12 January 2010, 12:10:40 AM »
I take it the NUST consider 'a source close to Ashley' in the Sunday Mirror to actually be him then?
they don't seem to have considered the possibility it could be bullshit which is an odd position as taking anything about ashley written in sunday papers unless it has direct quotes is not advisable

Offline OzzieMandias

  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #671 on: Tuesday 12 January 2010, 01:59:26 AM »
Fair play to them on the swift response. Will read it in the morning when I'm less tired to make sense of it.

Quote
The £7m figure comes from a respected company's Investment document
that was used to try to raise investment to buy the Club.

The headline figures in summary are for an investment of £95m and the
document states that they would expect "turn the investment of
£95million into a value of between £150million to £205million on
return to the Premiership.The £205m was top end but a 5% return on
investment would equate to over £84m on the predicted turnover.

Without going into lots of detail it is based on a £42m reduction in
wages (6months), £14m transfer fees received set against a projected
reduction of ticket revenue based on 34,000 crowds.  We are getting
crowds of 43,000 with the subsequent increase in half year season
tickets. Other reductions include  - outsourcing catering, outsourcing
match programmes, reduction of backroom staff by over 200 and still
continuing, the scaling down of the academy, a parachute payment of
£11.25m, decent television income, perimeter advertising of £50,000
per month, recent sponsorship deals etc etc

The perimeter advertising and large Sports Direct sign on the stand
are likely to be free advertising for his business.

One newspaper also came out with this same figure last week.

In the Sunday papers Mr Ashley said that he would not stay where he
was not wanted and would sell in the summer. We think this is why he
is waiting until then.

Since relegation Mr Ashley has invested an alleged £20m and that
figure has never been confirmed and the club has reduced its overdraft
without any significant investment in the playing staff.

Obviously, these figures are on return to the Premiership with the
extra revenue that will entail and we will have to wait to see the
actual published accounts but we think that these figures will stand
up to scrutiny.

I'll have a go.

This looks like it's based on a document from a few months ago when Ashley was trying to sell the club for £95 million. He is pointing out to potential buyers that if they take the club at that price and then get the club promoted, the club would be worth between £150m and £200m - which is probably correct.

They then point out the cost-cutting measures that are there to ensure the club is financially stable during the 'promotion season', and conclude that if someone makes the purchase, the return in terms of the increased value of the club is likely to be £84 million IF we are promoted. If we don't get promoted, things are still stable.

NUST have taken that figure of £84 million, divided it by 12, and concluded that Ashley is making a profit of £7 million per month. Complete rubbish.

What they are not taking into account is that we have not been promoted, and Ashley has already lost £230 million on his own purchase of the club and by clearing the initial £90 million debt.

You reckon "a respected company's Investment document that was used to try to raise investment to buy the Club" means Ashley? I'm not sure quite what it means, but how could it be Ashley "[raising] investment to buy the Club"?

Like the rest of this missive, it sounds suspiciously like nonsense.

Offline ikri

  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #672 on: Tuesday 12 January 2010, 07:39:33 AM »
Fair play to them on the swift response. Will read it in the morning when I'm less tired to make sense of it.

Quote
The £7m figure comes from a respected company's Investment document
that was used to try to raise investment to buy the Club.

The headline figures in summary are for an investment of £95m and the
document states that they would expect "turn the investment of
£95million into a value of between £150million to £205million on
return to the Premiership.The £205m was top end but a 5% return on
investment would equate to over £84m on the predicted turnover.

Without going into lots of detail it is based on a £42m reduction in
wages (6months), £14m transfer fees received set against a projected
reduction of ticket revenue based on 34,000 crowds.  We are getting
crowds of 43,000 with the subsequent increase in half year season
tickets. Other reductions include  - outsourcing catering, outsourcing
match programmes, reduction of backroom staff by over 200 and still
continuing, the scaling down of the academy, a parachute payment of
£11.25m, decent television income, perimeter advertising of £50,000
per month, recent sponsorship deals etc etc

The perimeter advertising and large Sports Direct sign on the stand
are likely to be free advertising for his business.

One newspaper also came out with this same figure last week.

In the Sunday papers Mr Ashley said that he would not stay where he
was not wanted and would sell in the summer. We think this is why he
is waiting until then.

Since relegation Mr Ashley has invested an alleged £20m and that
figure has never been confirmed and the club has reduced its overdraft
without any significant investment in the playing staff.

Obviously, these figures are on return to the Premiership with the
extra revenue that will entail and we will have to wait to see the
actual published accounts but we think that these figures will stand
up to scrutiny.

I'll have a go.

This looks like it's based on a document from a few months ago when Ashley was trying to sell the club for £95 million. He is pointing out to potential buyers that if they take the club at that price and then get the club promoted, the club would be worth between £150m and £200m - which is probably correct.

They then point out the cost-cutting measures that are there to ensure the club is financially stable during the 'promotion season', and conclude that if someone makes the purchase, the return in terms of the increased value of the club is likely to be £84 million IF we are promoted. If we don't get promoted, things are still stable.

NUST have taken that figure of £84 million, divided it by 12, and concluded that Ashley is making a profit of £7 million per month. Complete rubbish.

What they are not taking into account is that we have not been promoted, and Ashley has already lost £230 million on his own purchase of the club and by clearing the initial £90 million debt.

You reckon "a respected company's Investment document that was used to try to raise investment to buy the Club" means Ashley? I'm not sure quite what it means, but how could it be Ashley "[raising] investment to buy the Club"?

Like the rest of this missive, it sounds suspiciously like nonsense.

I've got a feeling they mean the Profitable Group

Offline Cronky

  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #673 on: Tuesday 12 January 2010, 07:53:34 AM »
Fair play to them on the swift response. Will read it in the morning when I'm less tired to make sense of it.

Quote
The £7m figure comes from a respected company's Investment document
that was used to try to raise investment to buy the Club.

The headline figures in summary are for an investment of £95m and the
document states that they would expect "turn the investment of
£95million into a value of between £150million to £205million on
return to the Premiership.The £205m was top end but a 5% return on
investment would equate to over £84m on the predicted turnover.

Without going into lots of detail it is based on a £42m reduction in
wages (6months), £14m transfer fees received set against a projected
reduction of ticket revenue based on 34,000 crowds.  We are getting
crowds of 43,000 with the subsequent increase in half year season
tickets. Other reductions include  - outsourcing catering, outsourcing
match programmes, reduction of backroom staff by over 200 and still
continuing, the scaling down of the academy, a parachute payment of
£11.25m, decent television income, perimeter advertising of £50,000
per month, recent sponsorship deals etc etc

The perimeter advertising and large Sports Direct sign on the stand
are likely to be free advertising for his business.

One newspaper also came out with this same figure last week.

In the Sunday papers Mr Ashley said that he would not stay where he
was not wanted and would sell in the summer. We think this is why he
is waiting until then.

Since relegation Mr Ashley has invested an alleged £20m and that
figure has never been confirmed and the club has reduced its overdraft
without any significant investment in the playing staff.

Obviously, these figures are on return to the Premiership with the
extra revenue that will entail and we will have to wait to see the
actual published accounts but we think that these figures will stand
up to scrutiny.

I'll have a go.

This looks like it's based on a document from a few months ago when Ashley was trying to sell the club for £95 million. He is pointing out to potential buyers that if they take the club at that price and then get the club promoted, the club would be worth between £150m and £200m - which is probably correct.

They then point out the cost-cutting measures that are there to ensure the club is financially stable during the 'promotion season', and conclude that if someone makes the purchase, the return in terms of the increased value of the club is likely to be £84 million IF we are promoted. If we don't get promoted, things are still stable.

NUST have taken that figure of £84 million, divided it by 12, and concluded that Ashley is making a profit of £7 million per month. Complete rubbish.

What they are not taking into account is that we have not been promoted, and Ashley has already lost £230 million on his own purchase of the club and by clearing the initial £90 million debt.

You reckon "a respected company's Investment document that was used to try to raise investment to buy the Club" means Ashley? I'm not sure quite what it means, but how could it be Ashley "[raising] investment to buy the Club"?

Like the rest of this missive, it sounds suspiciously like nonsense.

I've got a feeling they mean the Profitable Group

I take your point. It's not completely clear whether this was Ashley's view of the potential value of the club, or someone else's.

The most significant fact is NUST have used this information to imply that Ashley is currently raking off large monthly profits from the club, which is clearly nonsense. Either they don't understand the information, or have decided to put that particular slant on it. Either way, it's a worry.
People generalise too much.

Offline OzzieMandias

  • General Member
Re: NUST launch "Yes We Can" Campaign to buy club
« Reply #674 on: Tuesday 12 January 2010, 08:30:25 AM »
Fair play to them on the swift response. Will read it in the morning when I'm less tired to make sense of it.

Quote
The £7m figure comes from a respected company's Investment document
that was used to try to raise investment to buy the Club.

The headline figures in summary are for an investment of £95m and the
document states that they would expect "turn the investment of
£95million into a value of between £150million to £205million on
return to the Premiership.The £205m was top end but a 5% return on
investment would equate to over £84m on the predicted turnover.

Without going into lots of detail it is based on a £42m reduction in
wages (6months), £14m transfer fees received set against a projected
reduction of ticket revenue based on 34,000 crowds.  We are getting
crowds of 43,000 with the subsequent increase in half year season
tickets. Other reductions include  - outsourcing catering, outsourcing
match programmes, reduction of backroom staff by over 200 and still
continuing, the scaling down of the academy, a parachute payment of
£11.25m, decent television income, perimeter advertising of £50,000
per month, recent sponsorship deals etc etc

The perimeter advertising and large Sports Direct sign on the stand
are likely to be free advertising for his business.

One newspaper also came out with this same figure last week.

In the Sunday papers Mr Ashley said that he would not stay where he
was not wanted and would sell in the summer. We think this is why he
is waiting until then.

Since relegation Mr Ashley has invested an alleged £20m and that
figure has never been confirmed and the club has reduced its overdraft
without any significant investment in the playing staff.

Obviously, these figures are on return to the Premiership with the
extra revenue that will entail and we will have to wait to see the
actual published accounts but we think that these figures will stand
up to scrutiny.

I'll have a go.

This looks like it's based on a document from a few months ago when Ashley was trying to sell the club for £95 million. He is pointing out to potential buyers that if they take the club at that price and then get the club promoted, the club would be worth between £150m and £200m - which is probably correct.

They then point out the cost-cutting measures that are there to ensure the club is financially stable during the 'promotion season', and conclude that if someone makes the purchase, the return in terms of the increased value of the club is likely to be £84 million IF we are promoted. If we don't get promoted, things are still stable.

NUST have taken that figure of £84 million, divided it by 12, and concluded that Ashley is making a profit of £7 million per month. Complete rubbish.

What they are not taking into account is that we have not been promoted, and Ashley has already lost £230 million on his own purchase of the club and by clearing the initial £90 million debt.

You reckon "a respected company's Investment document that was used to try to raise investment to buy the Club" means Ashley? I'm not sure quite what it means, but how could it be Ashley "[raising] investment to buy the Club"?

Like the rest of this missive, it sounds suspiciously like nonsense.

I've got a feeling they mean the Profitable Group

I take your point. It's not completely clear whether this was Ashley's view of the potential value of the club, or someone else's.

The most significant fact is NUST have used this information to imply that Ashley is currently raking off large monthly profits from the club, which is clearly nonsense. Either they don't understand the information, or have decided to put that particular slant on it. Either way, it's a worry.

Exactly. They're either daft or they're liars. And either way they're putting unsubstantiated rumour into a communication to potential investors. Would you trust your pension to these people?